Time To Roll Your Crude Oil Trades To May

Today I will be talking about May Crude Oil as April no longer has the most volume, May is now the lead contract.   May Crude Oil rallied on Thursday, getting its strength from a weaker Dollar as traders pummeled the Us dollar in response to the Fed’s policy decision from yesterday.  The Fed announced they were leaving rates alone and cut back on the number of rate hikes from 4 potential rate hikes to only 2 hikes. The OPEC – NOPEC meeting headlines from on the Qatar meeting in April held fast as there weren’t any denials  and it seems members are accepting Iran’s desire to get their exports up to pre-sanction levels. Traders are also expecting US production to continue to decline and for US exports to increase thereby reducing excess US inventory. This has put bears on the defensive and scrambling to get out of short positions. May Crude broke out above its 2 week consolidation range Thursday, traded up to 41.71 and in my opinion sets up a potential test of resistance between 42.58 and 42.94. Crude had a strong close today as it settled right near the high and I propose buying a break out from Thursday’s high with a stop that is appropriate for your account size and risk tolerance.   

 High 41.71                      

 Low  -  40.00                                

 Last  -  41.67                               

Daily Pivots for 3/18/16:           














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